Press Releases


LMA launches guidance to market participants re Amendments & Waivers

10 July 2009

Events in the international syndicated loan market over the past year have highlighted the need for a more effective approach to managing requests for amendments and waivers and the LMA has, today, launched its paper "LMA guidelines for dealing with requests for amendments and waivers to loan agreements."

The paper has been drafted after consultation with a number of banks and financial institutions and seeks to provide benchmark best practices for all market participants whether they be an Agent, Arranger, Lender or the Borrower itself. Particular emphasis has been placed on adopting a pragmatic view, whereby participants may be required to deal with matters which are not specifically covered within the formal loan agreement. The paper specifically comments on the responsibilities of participants in terms of managing their handling of confidential and price sensitive information. It also looks at how to manage a situation where some investors have chosen to remain on the public side.

Nick Jansa, LMA Director and Head of European Loans and High Yield at Deutsche Bank, said:

"There have been a great many requests for amendments and waivers over recent months and it seems likely that this trend will continue for some time. This paper is very timely and will provide guidance for all market participants on how to manage the process more effectively."